VZCZCXRO3013
OO RUEHDE
DE RUEHAD #0729/01 1711002
ZNY SSSSS ZZH
O 191002Z JUN 08
FM AMEMBASSY ABU DHABI
TO RUEHC/SECSTATE WASHDC IMMEDIATE 1106
RUCPDOC/USDOC WASHDC IMMEDIATE
INFO RUEHDE/AMCONSUL DUBAI PRIORITY 7806

S E C R E T SECTION 01 OF 02 ABU DHABI 000729 
 
SIPDIS 
DEPARTMENT FOR NEA/ARP, T, ISN AND ISN/CPI CHERRINGTON 
COMMERCE FOR BIS U/S MANCUSO 
 
E.O. 12958: DECL: 06/18/2018 
TAGS: ECON ETRD OTRA ETRD BEXB ETTC AE
SUBJECT:  SCENESETTER FOR VISIT OF COMMERCE UNDER SECRETARY MARIO 
MANCUSO JUNE 23-24, 2008 
 
REF:  A. ABU DHABI 712 
¶B. ABU DHABI 727 
 
Classified by Charge d'Affaires Martin Quinn, Reasons 1.4 (b,d). 
 
¶1. (C) Embassy Abu Dhabi welcomes the June 23-24 visit of U.S. 
Department of Commerce, Bureau of Industry and Security, Under 
Secretary Mario Mancuso.  We have scheduled meetings with both BG 
Mohammed Al-Qamzi, the head of Dubai's General Directorate of State 
Security and the UAE Chair of the Counterproliferation Task Force and 
with Minister of Foreign Trade heikha Lubna Al-Qasimi as well as 
other official and business representatives. 
 
¶2. (C) The UAE i a central trade route for many 
proliferation-reated and financial transfers and has long been afocus of USG engagement in counter-proliferation matters.  Dubai's 
port of Jebel Ali is the world's argest man-made port and handled 
almost 10 million TEUs in 2007, an increase of 25 percent over the 
year before.  In October 2005, the State Department's Under Secretary 
for Arms Control proposed the establishment of a U.S.-UAE 
Counterproliferation Task Force (CTF) designed to promote greater 
cooperation and help the UAE identify and take steps necessary to 
address the proliferation problems it faces.  We have continued to 
engage the UAE at all levels on export control and nonproliferation 
related issues. 
 
UAE Strongly Engaged on USG Initiatives 
--------------------------------------- 
 
¶3. (S) The UAE has signed on to the Proliferation Security Initiative 
and Global Initiative to Combat Nuclear Terrorism.  The Emirate of 
Dubai is a member of both the Container Security Initiative and the 
Megaports Program.  Our cooperation with the UAE on interdicting 
transshipments to Iran has improved considerably with the passage of 
UNSCRs 1737, 1747, and 1803.  The UAE is currently detaining 
containers from four separate interdictions made at USG request, and 
is prosecuting its first case under the 2007 strategic trade control 
law (ref b).  The UAE is committed to ensuring that Iran does not 
obtain nuclear weapons, but Iran remains one of the UAE's largest 
non-oil export/re-export markets. 
 
¶4. (S) Although the UAE has been cooperative in interdicting 
shipments, UAE officials have raised concerns about the timeliness of 
USG-provided information with regard to interdicting shipments to 
Iran.  They have also raised concerns with the provision of follow-up 
information to help the UAE make a legal case for actions.  UAE 
officials have expressed concern about potential U.S. Congressional 
interest in targeting the UAE as a transshipment point to Iran. 
 
¶5. (S) With regard to proliferation finance issues, the UAEG quickly 
froze the accounts of Bank Sepah after it was designated in UNSCR 
¶1737.  The Central Bank Governor told Treasury Under Secretary Levey 
that the Central bank would issue guidance to financial institutions 
with regard to Iranian banks listed in UNSCR 1803.  Post has not yet 
seen any guidance.  According to the Central Bank Governor, the 
Deputy Governor of the Bank of Iran visited the UAE recently to 
complain about the strained relations between Iran and UAE banks.  Al 
Suwaidi said that he refused to meet with the Iranian official, 
sending his Deputy with instructions that the UAE Central Bank would 
not interfere on behalf of Iran. 
 
UAE'S Export Control Law Positive Sign of Progress 
--------------------------------------------- ----- 
 
¶6. (SBU) The UAE formally approved its federal export control law in 
August 2007.  The law includes controls over most items on the four 
multilateral control regimes (WA, NSG, MTCR, and AG) but needs to be 
amended in order to be fully consistent with international standards. 
 According to the UAE, it is working to update its controls lists. 
The law has four chapters and includes criminal penalties for the 
violation of the law. (NOTE: There is currently no provision for 
administrative penalties in the UAE.  END NOTE).  On March 13, 2008, 
UAE Arabic and English papers reported that the Dubai Public 
Prosecutors Office had referred a case to court regarding an attempt 
to import -- with the intent to re-export -- 250 kilograms of the 
corrosion-resistant metal Zirconium in violation of the UAE's 2007 
export control law.  Dubai's Attorney General Esam Al-Humaidan told 
the press that the accused was working with local brokers (Jordanian, 
Russian, UAE, and Indian nationals are purportedly part of the 
scheme).  At a recent USG-sponsored counter-proliferation seminar, a 
UAE official confirmed that the case is still on-going and has, to 
date, resulted in two arrests.  This is the first prosecution under 
the 2007 export control law and represents a welcome step. 
 
UAE Welcomes Training and Assistance 
------------------------------------ 
 
¶7. (SBU) As the USG works with the UAE to improve its export/border 
control system, we see some real progress, including passage of the 
 
ABU DHABI 00000729  002 OF 002 
 
 
export control law but also enhanced training efforts.  Under the 
EXBS program, on June 3-4 (at UAE's request) the U.S. Department of 
Justice's Office of Overseas Prosecutorial Development (DOJ/OPDAT) in 
collaboration with Embassy Abu Dhabi conducted a two-day workshop for 
UAE prosecutors and judges who handle proliferation related cases. 
On June 5, U.S. Immigration and Customs Enforcement conducted a 
half-day investigations training.  In large measure due to DOJ's 
excellent work in leading the training team, both workshops were very 
well received.  Prosecutors and judges have requested a visit to the 
U.S. to learn more about DOJ's role in prosecuting strategic trade 
control cases and said they would welcome a mutual legal assistance 
treaty (MLAT), which would be helpful on data and law enforcement 
information sharing.  We are currently pursuing other training 
possibilities, including licensing workshops.  The UAE has expressed 
interest in receiving training for customs officials.  The USG stands 
ready to continue working with the UAE to strengthen its strategic 
trade control system.  Under the EXBS program, we will continue to 
provide training and assistance aimed at helping the UAE develop 
responsible strategic trade control policies and practices consistent 
with international standards. 
 
Strengthening the Non-proliferation Relationship 
--------------------------------------------- --- 
 
¶8.  (C) U/S Mancuso's visit, coming shortly after a very successful 
export control training session and four months after the 
Counter-Proliferation Task Force meeting, will keep up the high level 
engagement with the UAEG.  Coming on the heels of Treasury Secretary 
Paulson's visit, it will likely also raise generate interest in 
Mancuso's thoughts on the CFIUS process. 
Quinn